Silgan Holdings, a US-based supplier of sustainable rigid packaging solutions for consumer goods products, has reported its strongest quarterly performance in company history.
In a statement on 22 July, Silgan Holdings reported a record second-quarter net income of $78.2 million (€66.8 million), or $0.70 (€0.59) per diluted share, compared $31 million (€26.4 million) and $0.28 (€0.23) respectively in the same period last year.
The company acquired aerosol overcap manufacturer Cobra Plastics, which manufactures injection moulded plastic closures for a range of consumer products, in February, and in June, the firm acquired the dispensing operations of Albéa.
Tony Allott, chairman and CEO of Silgan Holdings, said: “We are pleased to report a 55% increase in adjusted earnings per diluted share in the second quarter of 2020 as compared with the prior-year period as strong demand growth continued for many of our products. This sustained growth has been driven by continued increased home preparation and consumption of food, enhanced marketing efforts by several of our customers and increased home preparation and hygiene.
“We are particularly thankful for the exceptional dedication and success of the Silgan team in meeting the sustained needs of our markets and customers under the challenging operational circumstances caused by the COVID-19 pandemic.
“Our metal container business reported strong second-quarter segment income, driven largely by unit volume of growth of approximately 15% in food cans, which was sustained throughout the quarter. Our closures business also delivered strong second-quarter segment income, with a 25% increase over the prior year period, driven by volume growth for pumps and triggers offset in part by demand declines in beauty and certain beverage products.
“In addition, on 1 June, we welcomed 2,400 Silgan employees through the acquisition of the dispensing operations of Albéa. Our plastic container business continued its multi-year progression of steadily increasing segment income with the second-quarter 2020 results that were nearly double the prior year period, driven by volume growth of approximately 14% and excellent cost control.”
In terms of its closures division, Silgan Holdings’ net sales were a record $410.5 million (€350.5 million) in Q2, an increase of 13% compared to the same period last year. This increase was the result of higher unit volumes of approximately 3% and a “more favourable mix” of products sold, partially offset by the unfavourable foreign currency translation and the pass-through of lower raw material costs.
The boost in unit volumes was mainly due to strong volumes for certain consumer health, hygiene, personal care and food products as well as the inclusion of the Silgan Holdings’ recent acquisitions of Cobra Plastics and Albéa’s dispensing operations.